The principal agency that supports U.S. business abroad is the Department of
Commerce (DOC).
Harry Jordan’s company has just entered into an agreement with a German firm that
will create a separate legal entity. This new firm will be allowed to conduct business
and actively compete in the European Union’s various markets. A good description of
the new company is a “joint venture.”
In Italy and many Latin countries, family generally means only the parents and
children.
The cost and quality of the product are among the most important criteria by which
purchases are made.
Cybersquatters buy and register descriptive nouns, geographic names, names of ethnic
groups and pharmaceutical substances, and other similar descriptors and hold them until
they can be sold at an inflated price.
Japanese sales representatives are motivated more by the social pressure of their peers
than by the prospect of making more money based on individual effort.
While countries have standards for products produced within its borders, there are no
such standards that are applicable to imported goods.
Letters of credit shift the buyer’s credit risk to the bank issuing the letter of credit.
Most problems in collecting primary data in international marketing research stem from
the excessive cost of primary research in these markets.
The most advanced and viable of Africa’s regional organizations is called the Southern
African Development Community.
Mark Bressler is having great difficulties with his company’s advertising in Japan. As a
representative of Jerry Motors, he believes that it is entirely proper to use American
campaigns in the Japanese market. He was surprised to learn that a slogan “Body by
Arnold” (the company that makes external structures for Jerry Motors) loosely
translated in Japanese to mean “Corpse by Arnold.” Which of the following problems
did Mr. Bressler experience with his company’s advertising in this scenario?
A. Improper syntax
B. Improper colloquialisms or slang
C. Improper grammar
D. Improper local language
E. Improper translation
Which of the following is an uncontrollable factor for a marketer in a domestic
environment?
A. Firm characteristics
B. Competitive structure
C. Channels of distribution
D. Price of the product
E. Promotional measures
Competitive forces, political/legal forces, and economic climate are the three domestic
uncontrollable elements in marketing. Refer to Exhibit 1.3-The International Marketing
Task.
The text describes four kinds of company-agency-customer relationships that might be
used to bridge the cultural barrier that is present in most international marketing
research. Which of the following is deemed to be best suited for managing the cultural
barrier across the chain of communication?
A. company-agency-customers
B. company-agency-local agency-customers
C. company-foreign agency-customers
D. company-foreign agency-Internet-customers
E. company-Internet-customers
A joint venture is different from a consortium in that a joint venture:
A. usually operates in a country in which the participants are already present.
B. typically involves a large number of participants.
C. restricts the right to hold an equity position by its major partners.
D. does not involve the creation of a separate legal entity.
E. is formed mainly for executing short-term projects.
Under common law, the ownership of intellectual property is established by _____.
A. title deeds
B. use
C. tradition
D. patent
E. registration
Which of the following is true of a physical distribution system?
A. It involves only the physical movement of goods.
B. It is a total systems approach to the management of the distribution process.
C. A decision involving an activity has no impact on the cost and efficiency of one or all
others.
D. It excludes the interdependence of the costs of each activity.
E. It includes transportation mode, inventory quantities, and packing.
Explain the difference between a joint venture and consortia.
A name, term, sign, symbol, design, or combination used worldwide to identify goods
or services of one seller and to differentiate them from those of competitors is called
a(n) _____.
A. trademark
B. copymark
C. global brand
D. brand’s equity position
E. owner’s mark
A global brand is defined as the worldwide use of a name, term, sign, symbol (visual
and/or auditory), design, or combination thereof intended to identify goods or services
of one seller and to differentiate them from those of competitors.
Which of the following is true of ethnocentrism?
A. It is the cultural binding force among a diverse employee population in an
organization.
B. It is a problem that arises when managers from affluent countries work with
managers and markets in less affluent countries.
C. American managers have generally been uninfluenced by it, especially in the
beginning of the 21st century.
D. It is the cornerstone of effective adaptation in the field of international marketing.
E. Self-reference criterion is universally considered the technique to reduce or eliminate
ethnocentrism.
Western cultures like most North Americans, Swiss, Germans, and Scandinavians tend
to concentrate on one thing at a time and are typified by _____ time.
A. polychronic
B. bimodal
C. dual
D. monochronic
E. sequence
Feng shui is a Chinese ____, considered to be the process that links humans and the
universe to ch’i, the energy that sustains life and flows through our bodies and
surroundings, in and around our homes and workplaces.
A. illusion
B. ritual
C. belief
D. symbol
E. myth
Which of the following is true of Stage 1 of Rostow’s five-stage model of economic
development?
A. The economy is primarily driven by the production of services.
B. The most important industrial demand relates to natural resources extraction.
C. Infrastructure development is a primary requirement in the economy.
D. Manufacturing of both semidurable and nondurable consumer goods has begun.
E. The focus is on low-cost manufacturing of a variety of consumer and some industrial
goods.
_____ refers to an increase in national production that is reflected by an increase in the
average per capita gross domestic product (GDP) or gross national income (GNI).
A. Economic repression
B. Economic duress
C. Economic equilibrium
D. Economic development
E. Economic sustainability
Which of the following is true regarding the impact of global competition on the
business activities in the marketplace?
A. It has shifted the focus in the marketplace from a consumer’smarket to a seller’s
market.
B. It has improved the financial position of domestic industries.
C. It has put more power in the hands of the customer.
D. It has shifted the focus away from the performance quality of a product.
E. It has limited the choices of the consumers.
The European Commission, the Council of Ministers, the European Parliament, and the
Court of Justice are institutions of the _____.
A. COMECON
B. European Free Trade Area
C. European Economic Area
D. European Union
E. Trans-Pacific Union
In general, the end goal of all _____ is to reduce the impact of price competition or
eliminate it.
A. reciprocal pricing
B. administered pricing activities
C. free trade agreements
D. export-oriented trade strategies
E. price skimming
_____ are short-term efforts directed to the consumer or retailer to achieve such specific
objectives as consumer product trial or immediate purchase.
A. Sales promotion
B. Advertising
C. Trade shows
D. Direct selling
E. Public relations